Steps to consider to start and grow a company. Basics are provided to help entrepreneurs. Examples may relate to Biotech, Pharma and Medical Device businesses, but the ideas apply to most technology fields.

Wednesday, April 24, 2013

Entrepreneurs work hard to create businesses and make money in the
process.Their personal traits are part
of the business evaluated by others.Being stingy or ugly to employees is something that eventually gets
around.Treating tentative providers
poorly has the same tendency for negative recognition. People REMEMBER bad
treatment and eventually your treatment of others comes back to haunt you!

Success is a great neutralizing event.People treated like dirt tend to minimize the
bad and remember the good once they make lots of money.The problem is that a limited number of
startups achieve sufficient success for this to occur.In addition, the word may spread before the
company becomes successful. This means that people will remember the bad
treatment and your reputation suffers.Worse yet, contractors and future employees may shy away from working
with you because the reputation becomes public knowledge.

Adopting a solid business acumen and persona does not mean you
must act like an ASS!Careful thought
and treatment of others has a value.People will work harder and spread your praises when they believe you are
the type that everyone enjoys being around and working with.There is no need to give away free money and
ignore achieving great deals in your negotiations, but do it with care and
thought.People recognize that business
requires maximizing profits, but they resent dealing with poor business skills
and lack of understanding.In addition,
they dislike poor treatment.

The sad part is that some people never recognize that they are in
the disliked camp.They never realize or
do not care that people are resistant to work with them.The company develops and gradually faces
limitations attracting the kind of staff and contractors they most need to be
successful.In addition, the investor
pool will eventually get feedback from outside.This can create a different set of issues for the business.

There are many reasons to be a solid business professional and run
a tight ship.You have an obligation to
keep costs down and ensure solid performance.In doing so, try to remember that you may lose creditability by going too
far and being obnoxious, cheap, or uninformed.

Wednesday, April 17, 2013

More than one path usually exists. Find the one that best fits your business needs!

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Business and research are places where products discoveries occur
during attempts to solve problems and make improvements.It is rare that the discovery process has a
singular path; meaning that more than one route leads to the accomplishment of
key goals.If path limitations exist,
they arise because of attitudes, knowledge, and skills of the individuals
involved.People see problems
differently and backgrounds influence the directions and view of the problems;
e.g., is the “glass half full or half
empty?” Attitude and knowledge are sure to influence your direction and
problem resolution.

It is important to understand the problem from different
perspectives to achieve a resolution more useful to a larger group.Better understanding arises from quality market
assessments.Small or large group
studies can lead to a better understanding.One may also gain information via networking discussions among the right
group of individuals.The ability to
identify key issues and consolidate them into goals requiring resolution drives
the determination of the best set of characteristics to address.

Why is this important?Products that do not fit the best set of desired goals are less
interesting to the target market.Understanding of the market needs influence whether customers buy once
and go away, or return to buy frequently.Good research will determine if the product is even interesting to the
target market.Understanding of key
issues and problems assist creation of great products.Proper delineation of the product
characteristics are critical to tasking the development team in the discovery
process.Better definition of the ideal
product and intended use enhance the ability of the team to address and create
the right products for the target market.

Many problems have multiple solution paths leading to multiple products,
but only a limited subset of these may be of interest to your market.The article “Build
it and they will come is not a business plan” described the importance of
product creation for the target market.Business
and research require extensive effort to understand the issues and devise
proper solutions and desirable products.In your planning stages, try to incorporate a few of the key
considerations:1) Will the customers
like the product? 2) Will they return to buy again? 3) Does the product provide
right quality and value?4) Does it fit
their need and solve a problem they have?These are just a few of the areas to consider.

Remember, that companies that do not have repeat business or
interested customers will find their business a tougher thing to build. So, start out in the right direction and find
the path that is a bit easier to travel.

"If you are not thinking
about how you plan to structure this organization and how this person is buying
into the business...structure is important at the onset"

"I worked for the
government for 14 years and one of the things that was a hot button for me what
was when I asked someone to do somethings would refuse to do something because
it was not in their job description..(in a startup).your job is to do whatever
it takes to make it successful"

"if you do the wrong
thing at the wrong time it only takes one wrong move to demotivate your people
for months"”

The two articles point to the areas of planning and willingness to
perform in a startup.Planning is
critical before starting.Learning to
modify the plans as the business progresses is equally important.The ability to serve in multiple ways
contributes to getting all tasks completed and demonstrating leadership to the
team.

It was a pleasure speaking with Greg in this second interview and I
look forward to future discussions.The
added information provides more insight into these articles.

Tuesday, April 2, 2013

Some people are great with money and are able to save and spend in
a manner that does not create financial problems.Others are not so great and manage to amass
large debt with little to show for their expenditures.Many times those that are not good with
finances run businesses in a similar manner.Managing assets of a startup or any business is critical to the success
of the business.Many businesses borrow
funds as a primary means of growing.Managers
of businesses should always give careful considerations to use of available cash
or borrowing funds because the actions have long-term consequences.

The goals of building a business are to make money; i.e., cash flow must turn positive.Debt can make companies grow faster if used to
make improvements that result in achieving greater earnings or turning cash
flow positive sooner.Debt has a
potential tax advantage because interest may be a deductible item.The long-term loan payments may create a burden
on cash flow that escalates the company financial issues in times of reduced
earnings.

Companies sometimes have cash reserves.The reserves help weather downturns or slow
periods. The decisions to spend versus
borrow is one that should be carefully considered.The following may help your analysis.

Borrow versus Have:Some purchases are beyond available cash assets requiring one to borrow funds to make the purchase.Loans can be great until the cash flow crunch comes and the creditors are banging on your door to get their money back.On the other hand, spending money you have in the bank can reduce reserves and cause cash flow crunches as well.For example, not making payroll is a very demoralizing event.Carefully evaluate all decisions of borrowing versus using cash reserves.Estimate cash flows and ensure your ability to weather cash flow problems with and without a loan.

Want versus Need:Some purchases are things we want but may not
need.A new phone with all the latest
technology may be exciting, but the old phone may do everything required.The same is true for most items where a
replacement of functioning equipment takes place.It is much easier to spend when the item is a
necessity that will improve business and cash flow.Enjoyment versus Improvement: Aesthetic
improvements can bring more customers or they make your employees happier.Spending that creates enjoyment should
translate to improvements in the business: otherwise, consider delays in the
purchases.Evaluate improvements in
light of anticipated business improvements and increased earnings and cash flow.

Short versus Long Cycle:Some purchases are products that have short
cycles causing them to become obsolete in a few years. Other items purchased have
long and durable performance requiring minimal maintenance.The cost and lifecycle of the items are worth
consideration as to how they affect cash flows.Try to make expenditures based on need, improvement, and earning
improvements.